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EBRD Shareholder Special Fund


RUSEFF AND UNICREDIT LEASING: BENEFICIAL ECO-LEASING

May 2014

RuSEFF – the Russian Sustainable Energy Financing Facility– program, established by EBRD, for three years of its successful existence had already realized more than 700 projects, investments in which exceeded USD 200 mln (or equivalently, more than RUB 6 bln). Especially fruitful for the Program was 2013 – the year, during which the total number of financed energy efficient projects had been doubled.

A considerable contribution to the success of RuSEFF was made by newly joined in 2013 partnering financial institution – UniCredit Leasing, which, at the same time, currently is one the biggest market players in the sphere of leasing operations.   

For almost a year of cooperation, the overall cost of realized projects exceeded RUB 1 bln. According to the statistics for 2013, there are several economic sectors, which can be considered as the most active parts of the UniCredit Leasing’s activity, among them are: construction and wood processing (38%), transport sector (14%) and metallurgy (12%).  Energy efficient investments are aimed at the equipment modernization (35%), purchase of special techniques (35%), and replacement of obsolete transport means (30%). More than a half of the investments were realized by UniCredit Leasing in North-Western Federal District (including Saint-Petersburg),  13% - in Central FD (including Moscow), and 12% - in North-Caucasian  FD.

RuSEFF Program with the support of UniCredit Leasing has proved one more time that energy savings make not only significant contribution to the protection of the environment, but also are very profitable for the investors. The average level of energy savings in the realized projects is 23.6 % with the annual level of profitability of 19% and average payback period of 3-5 years.  

Vivid example of the strength of cooperation between RuSEF and UniCredit leasing in the sphere of energy efficiency is the project of the replacement of steam turbine and generator on the pulp and paper factory with overall amount of financing from the UniCredit Leasing side up to USD 7.1 mln and payback period of approximately 6 years. On the one hand, this Project will allow the company to reduce significantly its fuel costs, but, on the other hand, it will bring a positive externality to the environment.  According to the preliminary calculations, the reduction of energy consumption due to the realization of the Project will be equivalent to the annual energy expenditure of 19,000 households, and the reduction of CO₂ emissions is equal to the annual environmental impact of 20,000 passenger cars.

Many clients of UniCredit Leasing, who had participated in the RuSEFF Program, not only received long-term financing, but also obtained some technical support from the Russian and international experts. It allowed to reveal the potential of these companies, and also guarantee the profitability of energy efficient investments for the financing party even without the use of state subsidies. It is also important to highlight that this support is free of charge for the clients of UniCredit Leasing.